1. 2.1 © 2006 by Prentice Hall SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems The human resources function is responsible for: Attracting, developing, and maintaining the firm's workforce. Human resources information systems support activities such as:Human resources information systems support activities such as: Identifying potential employeesIdentifying potential employees Maintaining complete records on existing employeesMaintaining complete records on existing employees Creating programs to develop employees' talents and skills.Creating programs to develop employees' talents and skills.

2. 2.2 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems Major functions of systems: Personnel records, benefits, compensation, labor relations, trainingPersonnel records, benefits, compensation, labor relations, training Major application systems: Payroll, employee records, benefit systems, career path systems, personnel training systemsPayroll, employee records, benefit systems, career path systems, personnel training systems

3. 2.3 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) SYSTEMDESCRIPTIONORGANIZATIONAL LEVEL Training and development Tracks employee training, skills, and performance appraisals Operational Compensation analysis Monitors the range and distribution of employee wages, salaries, and benefits Management Human resources planning Plans the long-term labor force needs of the organization Strategic Table 2-5

4. 2.4 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems (Continued) An Employee Recordkeeping System Figure 2-11 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

5. 2.5 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems Business processes: Manner in which work is organized, coordinated, and focused to produce a valuable product or serviceManner in which work is organized, coordinated, and focused to produce a valuable product or service Concrete work flows of material, information, and knowledge—sets of activitiesConcrete work flows of material, information, and knowledge—sets of activities Unique ways to coordinate work, information, and knowledgeUnique ways to coordinate work, information, and knowledge Ways in which management chooses to coordinate workWays in which management chooses to coordinate work INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

6. 2.6 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems (Continued) Information systems help organizations achieve great efficiencies by automating parts of processesInformation systems help organizations achieve great efficiencies by automating parts of processes IS also contributes to completely rethinking processes.IS also contributes to completely rethinking processes. Business processes typically span several different functional areas.Business processes typically span several different functional areas. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

7. 2.7 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes Manufacturing and production: Assembling product, checking quality, producing bills of materials Sales and marketing: Identifying customers, creating customer awareness, selling INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Table 2.6

8. 2.8 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Finance & accounting Finance & accounting: Paying creditors, creating financial statements, managing cash accountsPaying creditors, creating financial statements, managing cash accounts Human resources Human resources: Hiring employees, evaluating performance, enrolling employees in benefits plansHiring employees, evaluating performance, enrolling employees in benefits plans INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Examples of Business Processes (Continued) Table 2.6 continued

9. 2.9 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems Cross-Functional Business Processes: Transcend boundary between sales, marketing, manufacturing, and research and developmentTranscend boundary between sales, marketing, manufacturing, and research and development Group employees from different functional specialties to a complete piece of workGroup employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

10. 2.10 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise The Order Fulfillment Process Figure 2-12 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

11. 2.11 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Systems for Enterprise-Wide Process Integration Enterprise applications: Designed to support organization-wide process coordination and integrationDesigned to support organization-wide process coordination and integration INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

12. 2.12 © 2006 by Prentice Hall Consist of Consist of : Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Systems for Enterprise-Wide Process Integration (Continued) INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

13. 2.13 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Enterprise Systems Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes.Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes. Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

14. 2.14 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Enterprise Application Architecture Figure 2-13 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

15. 2.15 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Traditional “Silo” View of Information Systems Within the business: There are functions, each having its uses of information systemsThere are functions, each having its uses of information systems Outside the organization’s boundaries: There are customers and vendorsThere are customers and vendors Functions tend to work in isolation INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

16. 2.16 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Traditional View of Systems Figure 2-14 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

17. 2.17 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Enterprise Systems Figure 2-15 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

18. 2.18 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Benefits of Enterprise Systems Help to unify the firm’s structure and organization: One organizationHelp to unify the firm’s structure and organization: One organization Management: Firm wide knowledge-based management processesManagement: Firm wide knowledge-based management processes Technology: Unified platformTechnology: Unified platform Business: More efficient operations & customer- driven business processesBusiness: More efficient operations & customer- driven business processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

19. 2.19 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Challenges of Enterprise Systems Difficult to build: Require fundamental changes in the way the business operatesDifficult to build: Require fundamental changes in the way the business operates Technology: Require complex pieces of software and large investments of time, money, and expertiseTechnology: Require complex pieces of software and large investments of time, money, and expertise Centralized organizational coordination and decision making: Not the best way for the firms to operateCentralized organizational coordination and decision making: Not the best way for the firms to operate INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

20. 2.20 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Supply Chain Management (SCM) Close linkage and coordination of activities involved in buying, making, and moving a productClose linkage and coordination of activities involved in buying, making, and moving a product Integrates supplier, manufacturer, distributor, and customer logistics timeIntegrates supplier, manufacturer, distributor, and customer logistics time Reduces time, redundant effort, and inventory costsReduces time, redundant effort, and inventory costs Network of organizations and business processesNetwork of organizations and business processes INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

21. 2.21 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Helps in procurement of materials, transformation of raw materials into intermediate and finished productsHelps in procurement of materials, transformation of raw materials into intermediate and finished products Helps in distribution of the finished products to customersHelps in distribution of the finished products to customers Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the sellerIncludes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller Supply Chain Management (SCM) INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

22. 2.22 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Haworth’s Supply Chain Management Systems INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

23. 2.23 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Information from Supply Chain Management Systems helps firms: Decide when and what to produce, store, and moveDecide when and what to produce, store, and move Rapidly communicate ordersRapidly communicate orders Track the status of ordersTrack the status of orders Check inventory availability and monitor inventory levelsCheck inventory availability and monitor inventory levels INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

24. 2.24 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Information from Supply Chain Management Systems helps firms: (Continued) Reduce inventory, transportation, and warehousing costsReduce inventory, transportation, and warehousing costs Track shipmentsTrack shipments Plan production based on actual customer demandPlan production based on actual customer demand Rapidly communicate changes in product designRapidly communicate changes in product design INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

25. 2.25 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Customer Relationship Management (CRM) Manages all ways used by firms to deal with existing and potential new customersManages all ways used by firms to deal with existing and potential new customers Business and technology disciplineBusiness and technology discipline Uses information system to coordinate entire business processes of a firmUses information system to coordinate entire business processes of a firm INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

26. 2.26 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Customer Relationship Management (CRM) (Continued) Provides end- to- end customer careProvides end- to- end customer care Provides a unified view of customer across the companyProvides a unified view of customer across the company Consolidates customer data from multiple sources and provides analytical tools for answering questionsConsolidates customer data from multiple sources and provides analytical tools for answering questions INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

27. 2.27 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Customer Relationship Management (CRM) INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

28. 2.28 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Knowledge Management Systems Collects relevant knowledge and make it available wherever and whenever it is neededCollects relevant knowledge and make it available wherever and whenever it is needed Support business processes and management decisionsSupport business processes and management decisions Also link the firm to external sources of knowledgeAlso link the firm to external sources of knowledge Support processes for acquiring, storing, distributing, and applying knowledgeSupport processes for acquiring, storing, distributing, and applying knowledge INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications

29. 2.29 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise There are extraordinary opportunities to use information systems to achieve business value, and increase profitabilityThere are extraordinary opportunities to use information systems to achieve business value, and increase profitability MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Opportunities:

30. 2.30 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Integration and the whole firm view: Given the different interests and perspectives within a firm, it is difficult to achieve consensus about the need for the "whole firm" viewpoint.Integration and the whole firm view: Given the different interests and perspectives within a firm, it is difficult to achieve consensus about the need for the "whole firm" viewpoint. Management and employee training: Training a large number of employees on many systems in a large organization involves commensurately large investments.Management and employee training: Training a large number of employees on many systems in a large organization involves commensurately large investments. MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges:

31. 2.31 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise Accounting for the cost of systems and managing demands for systems: Given the large number of different types of systems in a firm, and the large number of people involved with using them, it is a complex task to understand which systems are truly necessary and productive with high returns on investmentAccounting for the cost of systems and managing demands for systems: Given the large number of different types of systems in a firm, and the large number of people involved with using them, it is a complex task to understand which systems are truly necessary and productive with high returns on investment MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges: (Continued)

32. 2.32 © 2006 by Prentice Hall Management Information Systems Management Information Systems Chapter 2 Information Systems in the Enterprise MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Solution Guidelines: Inventory the firm’s information systems: Develop a list of firm-wide information requirements to give a 360-degree view of the most important information needs of the firm.Inventory the firm’s information systems: Develop a list of firm-wide information requirements to give a 360-degree view of the most important information needs of the firm. Employee and management education: Ensure that you understand how much training is required.Employee and management education: Ensure that you understand how much training is required. Account for the costs and benefits: Develop an accounting system for information services firm- wide.Account for the costs and benefits: Develop an accounting system for information services firm- wide.